The National Association of Home Builders' (NAHB) Composite Housing Market Index fell a hard 11.8% in November to 60, the lowest level since May 2003.

During the last twenty years the y/y change in the annual composite index has had an 85% correlation with the change in single family housing starts and there has been a 75% correlation between the current sales index and new single family home sales.

The m/m drop reflected sharp declines throughout the country.

The index for current sales of single family homes in November fell sharply to the lowest level since May 2003. The index for sales in six months also fell hard the lowest in over two years.

The NAHB index is a diffusion index based on a survey of builders. Readings above 50 signal that more builders view conditions as good than poor.